Calamity in Baltimore: Collapse of the Francis Scott Key Bridge could result in record marine damage

Enlarge image

The collapsed Francis Scott Key Bridge in Baltimore: "We are working closely with the owner and manager of the ship and the responsible US authorities"

Photo: Julia Nikhinson / REUTERS

The collision of the "Dali" with a bridge pillar is a tragedy whose economic dimensions cannot yet be measured. It is still unclear how long seaside access to the port will remain closed following the collapse of the Francis Scott Key Bridge in Baltimore. However, according to Bruce Carnegie-Brown, chairman of the insurance market Lloyd's of London, the accident could be the biggest loss in history for shipping insurers.

It is still too early to make an accurate estimate, said Carnegie-Brown. However, he would be "very surprised" if the collision of the container ship "Dali" with the Francis Scott Key Bridge did not result in multi-billion dollar damage. "The tragedy has what it takes to become the single largest loss in marine insurance."

“Dali” insurer cooperates with US authorities

Meanwhile, Britannia, Dali's insurer, has announced its cooperation with the ship's owner and the US authorities. The company said they are working together to investigate the bridge collapse.

The approximately 290 meter long container ship rammed a support pillar of the four-lane Francis Scott Key Bridge on Tuesday night, causing the more than 2.5 kilometer long structure to collapse. After the accident, ships are blocked from access to one of the most important ports on the American east coast.

"We are working closely with the owner and manager of the ship and the relevant US authorities as part of the investigation into the accident," Britannia said in a statement.

To date, the sinking of the cruise ship “Costa Concordia” in 2012 is considered the largest loss for shipping insurance at $1.5 billion. Marcos Alvarez from the rating agency Morningstar DBRS estimates Baltimore at two to four billion dollars, depending on how long the port at the mouth of the Patapsco River, which is particularly important for the auto industry, cannot be accessed because the bridge has collapsed into the water.

There are currently different assessments of the economic consequences of the accident. While US Transportation Secretary Pete Buttigieg spoke on Wednesday night of supply chain problems that could have massive economic consequences for the entire US, economists and logistics experts did not expect a major supply chain crisis with rapidly rising goods prices, according to Reuters.

eru/Reuters/dpa